FTX turmoil increases scrutiny of industry, something institutional investors have been waiting for

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The lack of regulatory clarity around cryptos might be about to change as more attention is drawn to FTX.

“When you combine the spending power of younger generations with the notion that banking relationships tend to be sticky, and the fact that today’s youth have embraced digital assets, then it becomes clear why so many institutional investors are no longer holding back from entering this new asset class,” stated Davies.

With nearly $64 billion in assets under custody, BitGo works with traditional hedge funds and fund managers in an industry that is evolving without regulatory clarity. “VCs continue to make investments in the digital asset space, where they receive token allocations that need qualified custody. Additionally, family offices are continuing to come off zero-percent allocations to one- to five-percent allocations,” stated Adam.

“Lack of clarity in the regulatory framework in the U.S. is holding back institutional adoption and is driving firms to move overseas, which means innovation is also moving overseas,” said BitGo chief compliance officer Jeff Horowitz, adding that “we don’t need to call all tokens securities to achieve that.”

 

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After listening to the SEC Chair I’m not sure that strict regulation is coming any time soon.

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